UPDATE 2-TransAlta raises bought-deal offer size by 25 pct

* To issue 10 mln preferred shares at C$25 each

* To fund capital projects, reduce debts

Dec 2 (BestGrowthStock) – TransAlta Corp (TA.TO: ), Canada’s biggest
publicly owned electricity producer, raised the size of the
bought deal offer by 25 percent, hours after making the initial
announcement.

The company, which runs coal, gas and renewable power
facilities in Canada, said it will raise C$250 million. Earlier
in the morning the company said it would raise C$200 million.

The company would issue 10 million preferred series A
shares for C$25 each.

The net proceeds of the offering will be used to partially
fund capital projects, other general corporate purposes and to
reduce short-term debts of the company and its affiliates, it
said in statement.

The company may invest the funds that it does not
immediately require in short-term marketable debt securities,
it added.

The shareholders will be entitled for a cumulative
quarterly dividend yielding 4.60 percent yearly until March 31,
2016.

The dividend rate will be reset every five years on a par
with the five-year government of Canada bond yield plus 2.03
percent.

TransAlta also gave preferred shareholders the option to
convert to series B shares, which pay out quarterly floating
dividends at a rate equal to the three-month Treasury Bill
yield plus 2.03 percent.

CIBC, RBC Capital Markets and Scotia Capital will
underwrite the issue, expected to close by Dec. 10.

The company’s shares, which have gained over a percent
since it reported weak third-quarter results in October, were
little changed at C$20.95 on Thursday on the Toronto Stock
Exchange.
($1=1.017 Canadian Dollar)
(Reporting by Aftab Ahmed in Bangalore; Editing by Don
Sebastian)
([email protected]; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5800; Reuters Messaging:
[email protected]))

UPDATE 2-TransAlta raises bought-deal offer size by 25 pct